There is simply no reason to believe that Dollarization would do anything to a local economy than to uphold sovereignty and democratic practices. Dollarization provides a strong currency in place of, or alongside, a nations own currency. This adds to the stability of the currency and thus the economy and promotes a nations economic stability, and supports it's sovereignty and democratic practices.
Dollarization, though it has its benefits such as creating stability in a country when it comes to exchanging goods and services, does indeed have a bad side: it does not uphold sovereignty and democratic practices. Rather, it takes away the country's ability to influence their own policy's about monetary concerns because everybody must use the decided currency. Many people do not have a say in whether or not they want this kind of currency, which seems to be undemocratic to me.